Brent oil price firm at $112 a barrel, follows European stock markets higher

The price of Brent oil futures climbed again on Tuesday and opened today’s session over $112 a barrel as European borrowing costs fell, stock markets climbed and the euro strengthened against the US dollar.

Latest Brent Oil Price

In London, Brent crude oil futures for March 2012 delivery was trading at $112.07 a barrel, 07.58 GMT this morning on the ICE Futures Exchange.

The European oil contract finished Tuesday’s trading session at $111.66 a barrel, or 0.3 percent higher on the day after choppy trading from $110.54 to $112.79.

The intraday peak was above Brent’s 200 day moving average of $112.45.

European Stock Markets

European stock markets rallied Tuesday on news of upbeat economic data in Asian powerhouse China and surging investor confidence in the eurozone’s leading economy Germany.

Dealers largely shrugged off Monday’s downgrade of the eurozone rescue fund, the EFSF, and turned bullish after successful short-term bond auctions by the EFSF and Spain.

At close, London’s FTSE index of leading companies rose 0.65 percent to 5,693.95 points. In Paris, the CAC-40 index gained 1.4 percent at 3,269.99 points and in Frankfurt the DAX 30 jumped 1.82 percent to 6,332.93 points. Elsewhere in Europe, Milan gained 0.69 percent, Madrid 1.01 percent, Lisbon 0.43 percent, Brussels 1.35 percent, Zurich by 0.41 percent and Amsterdam 0.77 percent.

On currency markets the US dollar lost 0.3 percent to $1.27740 per euro. A weaker US dollar tends to push both Brent and US WTI oil prices higher.

“Brent looks to be reflecting the eurozone concerns. The China GDP was good, but exports were down and that highlights the slowdown in Europe.” said John Kilduff, a partner at hedge fund Again Capital, New York.

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Brent oil price firm at $112 a barrel, follows European stock markets higher